SMO is moving forward with an investment in a palm kernel crushing plant at its Phanom branch, with a capacity of 300 tonnes per day. The plant is expected to begin operations in the second quarter of 2027, producing crude palm kernel oil, or CPKO, to supply the high-margin oleochemical industry with a focus on exports. It is estimated to generate additional annual revenue of 1.5 billion baht once fully operational. At the same time, the company is expanding its base with a new palm oil extraction plant in Nakhon Si Thammarat province, which is currently undergoing land filling and is expected to be completed by the end of 2027. Regarding the current situation, palm fruit prices have surged due to raw material shortages, but the company employs a lean management strategy by shifting palm fruit to ready plants to average out costs, while benefiting from a weaker baht that supports exports. Meanwhile, rainfall that began in late second quarter and continued into early third quarter will boost palm output from late third quarter to early fourth quarter.
Smothong Group Public Company LimitedInvestment in new plant expected to generate additional annual revenue of 1.5 billion baht.